World Bulletin / News Desk
Supportive fiscal and macroprudential policies have mitigated the downside risks on economic activity, the governor of Turkish Central Bank said Thursday.
Giving a presentation to investors at the International Monetary Fund and World Bank Meetings in Washington D.C, Murat Cetinkaya stressed that currency volatility slowed shortly after the tightening monetary policies, according to a statement on the bank’s website.
"Lagged impact of cost push factors will keep inflation at elevated levels in the near term," Cetinkaya said, adding that a tight stance in monetary policy would be maintained until inflation outlook displayed a significant improvement.
Cetinkaya also noted that inflation was expected to peak in April before gradually coming down in the forthcoming period.
According to the Turkish Statistical Institute (TurkStat), Turkey's annual inflation rate rose 11.29 percent year-on-year in March, from 10.13 percent in February.
The dollar/Turkish lira exchange rate, which saw a historic hike -- around 3.94 liras -- in mid-January, stood at 3.6450 at Thursday’s close.
The rate was 3.02 on average last year while $1 traded at 2.71 liras in 2015.
“Recent macroeconomic developments indicate the resilience of the Turkish economy,” he said. “Contribution of exports to economic growth will increase throughout 2017.”
According to TurkStat, Turkey's GDP, which grew 2.9 percent last year, was around 2.59 trillion Turkish liras ($856.8 billion) in 2016, compared with 2.34 trillion liras ($861.5 billion) the previous year.
Turkish economy minister says growth will 'most likely' surpass 7 percent in first quarter of 2018
Net profit at the Frankfurt-based group fell 79 percent year-on-year to 120 million euros ($146 million).
BIST 100 index falls by over 2 percent at close, going down some 2,600 points from previous close
Policy rate, also known as one-week repo rate, remains same at 8 percent; lending rate rises 0.75 percent points
BIST 100 increases 0.29 percent; US dollar/Turkish lira exchange rate stands at 4.0850
Local units operating in manufacturing industry work at 77.3 pct capacity in April, says Central Bank
Public sector net borrowing falls by 3.5 billion pounds in 2017-18 financial year, says Office of National Statistics
Indices for service, retail trade, construction sectors fall in current month compared with March: Official data
Data monitoring company IHS Markit also flagged a slight slowdown in France, where strikes were interrupting a resurgent boom on the back of government reforms.
Treasury reports central government debt stock in March rises around 15 pct year-on-year, reaching nearly $235 billion
Sales to foreigners amounted to 1,827, 15.8 pct rise year-on-year, according to official report
BIST 100 slips 0.15 percent; US dollar/Turkish lira exchange rate stands at 4.0460
BIST 100 rises 0.01 percent; US dollar/Turkish lira exchange rate drops to 4.0250
Fresh hopes that Donald Trump and North Korea's leader Kim Jong Un will hold a historic summit within months also provided some much-needed optimism.
The fund cautioned that investors and financial markets expect a steady approach to monetary tightening based on the belief inflation will remain relatively tame.